BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 122                    HEARING DATE: April 28, 2009   

          AUTHOR: Pavley                     URGENCY: No  
          VERSION: April 15, 2009            CONSULTANT: Dennis O'Connor  
          DUAL REFERRAL: No                  FISCAL:Yes  
          SUBJECT: Groundwater.  
          
          BACKGROUND AND EXISTING LAW
          California does not have any statewide laws governing  
          groundwater supplies.  However:

            The State Does Have Statewide Laws Governing Groundwater  
            Quality  .  In particular, the Porter Cologne Act, among other  
            things, directs the State Water Resources Control Board  
            (SWRCB) and the Regional Water Quality Control Boards to  
            promulgate and enforce statewide regulations governing  
            groundwater quality.

            The State Does Have Laws Governing Groundwater Supplies In  
            Some Parts Of The State  .  For example, in the counties of  
            Riverside, San Bernardino, Los Angeles, and Ventura, current  
            law requires any person who extracts groundwater in excess of  
            25 acre-feet in any year to file an annual notice of  
            extraction with the SWRCB.  This requirement, with certain  
            exceptions, applies to any groundwater extracted after 1955.   
            Moreover, after 1959, failure to file a notice for any  
            calendar year within 6 months after the end of that calendar  
            year is deemed equal to nonuse of the groundwater.

            The Legislature Has Created 13 Special Act Districts To Manage  
            Groundwater Supplies  .  These districts include Orange County  
            Water District, Santa Clara Valley Water District, Monterey  
            Peninsula Water Management District, and Long Valley  
            Groundwater Management District.

            Current Law Requires DWR To Study & Report On Groundwater  
            Conditions  .  Current law only requires the Department of Water  
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            Resources to report its findings to the Governor and the  
            Legislature no later than January 1, 1980.  DWR has updated  
            this report infrequently and only upon appropriation of funds  
            for that purpose.

          PROPOSED LAW

          This bill would establish a statewide groundwater elevation  
          monitoring program as follows:

           Local groundwater management interests would notify DWR as to  
            who would conduct the monitoring of groundwater elevations,  
            what area they would monitor, their qualifications for  
            conducting the monitoring, etc.

































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           If more than one party seeks to become the monitoring entity  
            for the same portion of a basin or subbasin, DWR would consult  
            with the interested parties to determine who would perform the  
            monitoring functions. In determining which party would conduct  
            the monitoring, DWR would be required to adhere to the  
            following priority:
             1.   A watermaster or water management engineer who was  
               appointed by a court as a part of an adjudication  
               proceeding.
             2.   (a) A groundwater management agency with statutory  
               authority to manage groundwater pursuant to its  
               implementing legislation, or
             (b) A water replenishment district.
             3.   (a) A local agency that is managing all or part of a  
               groundwater basin or subbasin under what is known as an AB  
               3030 plan (Water Code Section 10750 et seq.), or
             (b) A local agency or county that is managing all or part of  
               a groundwater basin pursuant to any other legally  
               enforceable groundwater management plan with provisions  
               that are substantively similar to AB 3030.
             4.   A local agency that is managing all or part of a  
               groundwater basin or subbasin pursuant to an integrated  
               regional water management plan that includes a groundwater  
               management component that complies with the requirements of  
               SB 1938 (Water Code Section 10753.7).
             5.   A county that is not currently managing all or a part of  
               a groundwater basin.
             6.   A voluntary cooperative groundwater monitoring  
               association formed pursuant to this bill.

           Monitoring entities would be required to start monitoring and  
            reporting groundwater elevations by January 1, 2010.  The  
            groundwater elevation data would be made readily available to  
            DWR, interested parties, and the public.

           By January 1, 2010, DWR would begin to identify the extent of  
            monitoring of groundwater elevations that is being undertaken  
            within each basin and subbasin.  If DWR determines that no one  
            is monitoring all or part of a basin or subbasin, DWR would be  
            required to determine if there was a local party willing to  
            conduct the monitoring.

           If (a) DWR determines there is no local interest in conducting  
            the monitoring, and (b) DWR determines the existing monitoring  
            network is insufficient to demonstrate seasonal and long term  
            trends in groundwater elevations, and (c) Board of Mining and  
            Geology concurs with that determination; then DWR would be  
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            authorized to monitor groundwater elevations and to assess a  
            fee to well owners within the DWR monitored area to recover  
            its direct costs.

          This bill would also require DWR to update the groundwater  
          report by January 1, 2010, and thereafter in years ending in 5  
          and 0.

          ARGUMENTS IN SUPPORT

          The author, quoting from PPIC's report "Water for Growth:  
          California's New Frontier," notes that, "Groundwater is the  
          largest single source of new supplies projected by the [urban  
          water management plans], and two-thirds of the increase is  
          projected in areas outside fully managed basins.  In some of  
          these areas, conflicts have already begun to emerge, as  
          developers plan to use groundwater to supply new housing  
          projects."  

          According to the author, "California's 'Don't ask - don't tell'  
          policy for groundwater is not working.  While the state has over  
          500 distinct groundwater basins and subbasins, no one has  
          oversight or management responsibilities over all or even part  
          of any of these groundwater basins or subbasins unless a court  
          has ordered it, the Legislature has established a special  
          district to do it, or a voluntary group of groundwater users  
          chose to do it.  For much of the state, this means that no one  
          is looking out for groundwater."

          ARGUMENTS IN OPPOSITION
          A coalition of largely agricultural interests raise a number of  
          concerns.  

          "We start from the premise that groundwater basins are local,  
          rather than state, resources.  Significant local groundwater  
          management is successfully underway in California, and we  
          consider it incumbent on the state to identify what information  
          needs are not being met, and to fund the collection of  
          information to meet those needs out of state resources, rather  
          than to adopt a state requirement on local groundwater basins in  
          order to require local water users, and their special districts  
          and local governments, to shoulder the cost of meeting the  
          state's needs."

          "Before the state imposes a new groundwater monitoring and  
          reporting requirement that is locally funded, it is appropriate  
          for the state to fully use the information at its disposal,  
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          identify what further information it actually needs, and what it  
          needs the information for, and to fully fund the proper  
          operation of its own existing groundwater monitoring network."

          "Groundwater is not a public trust resource, under published  
          California case law.  Santa Teresa Citizen Action Group v. City  
          of San Jose (2003) 114 Cal.App.4th 689, 709; see also Golden  
          Feather Community Association v. Thermalito Irrigation District  
          (1989) 209 Cal.App.3rd 1277, 1284-1285.  The use of underlying  
          groundwater is a real property right in California.  The  
          correlative right to use of underlying groundwater is a matter  
          between neighbors on the same basin, and not a matter between  
          landowners and the state.  The groundwater basins are local  
          resources of various scope, some of which underlay more than one  
          county, and many of which are solely within individual counties.  
           Local districts, not the State of California, are the proper  
          level of government to regulate the relations between neighbors  
          on the same groundwater basin."

          COMMENTS 
          
           4th Time A Charm?   There have been three previous attempts in  
          recent years to establish a statewide groundwater monitoring  
          system.  Senator Kuehl carried two bills in the 2005-6 session  
          that, among other things, would have established a statewide  
          groundwater monitoring system, SB 820 & SB 1640.  Both bills  
          were vetoed.  Last session, Senator Steinberg carried SB 178.   
          It too was vetoed.  In his veto statement on SB 178, the  
          Governor wrote "I recognize that this bill is attempting to  
          provide new, useful information about groundwater elevation.   
          However, this bill places significant and enormously costly  
          requirements on the Department of Water Resources (Department)  
          to undertake a great deal of work without assuring any  
          guarantees of the receipt of any new information regarding  
          groundwater elevations within any basin in the state."

          This bill is identical to the introduced version of SB 178.

           Change Dates.   As this bill is identical to the introduced  
          version of SB 178, it includes the same dates and timelines.   
          Should this bill move forward, the author should consider  
          realigning the dates.

           Case Law Is Silent On Public Trust  .  It is often asserted that  
          groundwater is not a public trust resource.  In general, the  
          public trust doctrine posits that the sovereign owns all of its  
          navigable waterways and the lands lying beneath them as trustee  
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          of a public trust for the benefit of the people.  However, the  
          Constitution, the statutes, and case law are silent on (1)  
          whether or not groundwater specifically is or is not a public  
          trust resource, as well as (2) under what circumstances  
          groundwater might or might not be considered a public trust  
          resource.  One case, Santa Teresa Citizens Action Group v. City  
          of San Jose, is occasionally cited as substantiating the  
          position that groundwater is not a public trust resource.   
          However, in that case, the California Court of Appeal found that  
          the public trust issue under consideration was not ripe for  
          decision.  Therefore, we can conclude nothing based on this  
          case.

          SUGGESTED AMENDMENTS: None

          SUPPORT
          None Received

          OPPOSITION
          California Bean Shipper Association
          California Cattlemen's Association
          California Chamber of Commerce
          California Farm Bureau Federation
          California Grain and Feed
          California Pear Growers
          California Seed Association
          California Warehouse Association
          California Wheat Growers Association
          Pacific Egg and Poultry Association
          Regional Council of Rural Counties
          Western Growers
          Wine Institute















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